Drake Software blog for tax pros, covering tax, IRS news, and more

e-File Mandate

Did you know that almost 70% of tax year 2009 U.S. Individual tax returns were filed electronically? Are you a tax preparer that still prepares papers returns to be placed in the mail box? Have you been procrastinating in your decision to go electronic? Well, ready or not… According to the IRS Mandate it’s time! The IRS is no longer going to give you the choice of filing returns on paper if you prepare more than 10 tax returns annually. Actually, that threshold is 100 or more for tax year 2010 (calendar year 2011), then drops to 10 for tax year 2011. At Drake the support team is trained to help with the e-filing process and the software is designed to make the transition east.

When the IRS implemented a new program for electronically filing individual and business tax returns in 1986, Drake Software began using the new technology, transmitting some of the first electronically filed tax returns. And in 2004, Drake Software won the IRS Modernized e-file Pioneer Award for its initiative in electronically filing tax returns. Over the years we continue to be one of the largest filers of electronic returns. With both state and federal transmission capabilities, we are proud to say we seamlessly processed over 15 million returns last year.

So don’t wait. Learn how to e-file now and avoid obstacles next year when it really counts. IRS is phasing in this requirement for that very purpose – so preparers have time to learn and get prepared to meet the requirement. Continue reading Taxing Subjects to learn more about this topic. Or if you have questions about e-filing with Drake Software, feel free to contact us with your questions. It’s one of our many areas of expertise – we transmitted over 15 million federal and state tax returns in 2010 and we make it easy for our customers.

The Taxing Subjects staff is proud to cover the latest in tax-industry-related news, from tax law and IRS updates to technology and business strategies. If you have questions about an article or just want to reach out to the Taxing Subjects staff, email comments@taxingsubjects.com.